Gulf Investors Amass Dubai Real Estate
UAE Investors completed real estate transactions worth a whopping AED12.5bn in Dubai in the first half of 2014.
Dubai Land Department (DLD) has announced that the total sum of Gulf Cooperation Council (GCC) investment in Dubai's real estate market exceeded AED19bn from January through to July 2014.
Out of the total invested by Gulf buyers, more than 17% of property purchases were by Saudi Arabians, making them the second largest investors in Dubai real estate.
Demand for high-end commercial developments and luxury residential is particularly high among Saudi investors, making them the driving force in the UAE real estate sector. Saudi investors completed 1,121 transactions worth AED3.4bn in the first half of this year.
However the most investment poured in from the Emirates according to the report, with UAE nationals making transactions of AED12.5bn in the city's property sector in H1 2014. The amount represents almost double the AED6.5bn invested by all other GCC nationals combined.
Qatari investment ranked third with 113 transactions worth AED1.5bn; Kuwaitis in fourth place with 263 transactions worth AED839m; Omanis in fifth purchasing property worth AED482m with Bahrain citizens forking out AED247m over the same period.
Sultan Butti bin Mejren, Director General of DLD said: "UAE investors made 2,513 transactions worth a total of AED12.568bn in the first six months of the current year and in doing so, were placed at the GCC top spot well above all other investors in Dubai's real estate market".
"The figure indicates the great demand from UAE nationals in investing in property in Dubai and sends out a reassuring message to all other categories of investor. In addition to strengthening confidence in the market, it provides solid foundations that will ensure its sustainability and long-term stability, he added.
In Conclusion, bin Mejren said: "The wise policy pursued by the government of Dubai has created incentives that are encouraging smart real estate investors from across the world. The success of this policy as evinced through the sheer volume of investments made by GCC citizens, points to the increasing trust placed in Dubai's property sector. This confidence will radiate to all corners of the globe and attract foreign nationals from countries outside of the region".
Over the last 18 months, Dubai has re-emerged as a real estate investment hotspot after crashing spectacularly in 2008. Despite initial concerns of a bubble forming, Dubai's property remains a popular safe haven for Gulf investors.
With considerably strengthened fundamentals, the Emirate is much better placed economically to underpin growth in its property sector, reducing associated risks to foreign investors.